UPDATE: Citigroup Maintains Buy Rating, Lowers PT for Avago Technologies

In a company update published earlier today, Citigroup Inc. maintained its Buy rating for Avago Technologies AVGO, but lowered its price target from $44.00 $39.00. Citigroup said they kept their rating “as it offers both offensive and defensive attributes. Offensive traits include: 1) it should outgrow peers by ~5% per year in the next 3-5 years helped by new product ramps in wireless (38% sls) & wireline (27% sls), and 2) 100-150bps mix-driven GM improvement per year. Defensively, it offers:1) discount C12E P/E versus the group, 2) zero debt and $4+ cash share year-end, 3) a 1.5% dividend yield set to increase each quarter, and 4) recently announced $500M stock buyback plan.” Avago Technologies closed yesterday at $31.05.